Parinam Law Associates successfully represented Mr. Shreehas Tambe, a senior executive of Biocon Ltd. in proceedings before the Hon’ble Securities Appellate Tribunal (SAT).
The issue pertained to alleged violation of the SEBI (Prohibition of Insider Trading) Regulations, 2015 by Mr. Tambe. SEBI alleged that sale of shares of Biocon by Mr. Tambe were violative of the Regulations.
The SAT has ruled that grounds of demonstrating innocence by an insider under Regulation 4 are not exhaustive. In the present case, since the sale was for purchase of a flat, it was bona fide.
This is an important ruling that supports the view that where an insider demonstrates a bona fide reason for trading, it can be taken as basis for dropping the charge of insider trading.
The ruling can be found here: http://sat.gov.in/english/pdf/E2022_JO2021491.PDF
Mr. Ravichandra Hegde, Partner and Mr. Samyak Pati, Associate from Parinam Law Associates argued for Mr. Tambe.